Vaurum plans to introduce combined Bitcoin services for existing financial institutions by building white label software which enables entities such as brokers and hedge funds to host their own exchanges.
“Most investors — even savvy institutions — need an easy-to-use and compliant platform through which to buy and sell Bitcoins, and we provide that solution,” said CEO Avish Bharma in a statement.
Vaurum is one of a number of Bitcoin startups to have successfully gained funding this year, and there is a sense of optimism among investors about the currency in general, it would appear. Bloomberg announced last week that it would now be listing BTC in addition to fiat currencies.
“Why are we providing information on our platform about such a controversial market? Three main reasons: Transparency ... Client demand ... Innovation” it writes on its blog.
Despite also cautioning on any suggestion that its move is tantamount to “endorsing or guaranteeing Bitcoin,” many commentators consider it will have implications on both the volume and volatility of the currency, according to the Wall Street Journal.
Vaurum’s cash is likewise a first for investor firm Battery Ventures, which has until now not provided funds to Bitcoin startups.
It is rapidly becoming an exciting climate for Bitcoin, and it would seem that the rift between governments and powerful private financial sector will play out significantly in future. The news of Vaurum’s successful finance deal comes at a time when Bitcoin companies on the other side of the world in China are being driven underground or out of business due to pressure by central banks.
With such serious money involved, in addition to Bloomberg’s positive statement, one must wonder if a wholly critical stance on Bitcoin, regardless of the reasons behind it, will ever be truly workable.